What Does Driveaway Price Mean In Australia 2023

what does drive away price include

Driveaway price refers to the total cost of purchasing a vehicle, encompassing the vehicle’s price along with all necessary fees required to legally drive it off the dealership’s lot.

What Does Driveaway No More to Pay Mean?

you walk into a car dealership, make the payment, and drive away without any additional costs looming over your head. 

Sounds ideal, right? That’s the premise behind drive-away pricing – a promise of simplicity and a seamless buying experience. But is it that straightforward?

When you spot an ad flaunting drive-away pricing or no on-road costs, it’s tempting to seal the deal on the spot. 

However, beneath the surface lies a potential minefield of hidden expenses. 

To avoid unexpected financial bumps, it’s crucial to unravel what’s truly included in the deal and ask the right questions before making a purchase.

Understanding On-Road Costs:

On-road costs encompass the additional charges necessary before legally driving your newly purchased car home. 

These expenses can vary between states, so understanding which costs the dealer covers helps in planning your vehicle’s operational budget.

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What’s Included in the Drive-Away Price?

Vehicle Registration Fees:

  • Registering a vehicle in your name or your company’s name is a legal requirement. 
  • This process incurs fees that need to be factored into your budget, irrespective of the car’s purchase source.

Luxury Car Taxes (LCT):

  • LCT applies when a vehicle’s price surpasses a specific threshold. It’s not just about ‘luxury’ brands; even popular models like certain Toyota vehicles can incur LCT if their value exceeds this threshold.
    In the 2022-23 financial year, LCT is set at $71,849 for many vehicles and $84,916 for electric cars, impacting those purchasing fuel-efficient or luxurious vehicles.

Compulsory Third-Party Insurance:

  • A mandatory insurance type covering medical costs in accidents where you’re at fault. 
  • This insurance varies in its inclusion within the registration costs across states, emphasizing the need for comprehensive coverage for car damage and property.

Stamp Duty:

  • Calculated by the state government, stamp duty is unavoidable and is often calculated by the dealership. 
  • It’s based on the vehicle’s value and environmental impact, influencing the overall cost.

Dealer Delivery Charges:

  • While not government-regulated, these charges cover the dealership’s expenses in preparing the vehicle for sale. 
  • They are often absorbed into the purchase price but could be maneuvered during negotiations, impacting the perceived deal’s value.

Navigating State-Specific Regulations:

Understanding state-specific regulations is vital. 

Some states mandate technical check-ups before renewal or require compulsory mechanical inspections during car transactions.

Final Considerations:

The excitement of purchasing a new vehicle can overshadow the hidden costs beyond the sticker price. 

Car dealerships might strategically omit on-road costs from the advertised price, which could emerge as surprises post-purchase.

Always inquire about the breakdown of on-road costs to avoid budget stretching. Remember, dealerships are businesses aiming for profit. 

Uncover the motives behind drive-away pricing, ensuring transparency in the deal’s terms before finalizing the purchase. 

Being well-informed is the key to driving away not just with a new car but with financial confidence.

Marcus Oliver

Article By Marcus Oliver

His qualifications and over 22 years experience in the cash for cars industry make him a renowned car valuation expert for vehicles of all conditions. As the Automotive Acquisition Specialist, a dedicated automotive buyer and as a Certified Car Appraiser,, he has shaped the company's narrative, emphasizing sustainable car recycling. His expertise and commitment have solidified Ezy Car Wreckers' reputation in Adelaide.